BUY BACK OF SECURITIES
WHAT is the manner in which the company can buy back its own shares?
The company can buy back its shares in any of the following manners:
From the existing shareholders on a proportionate basis through the tender offer;
From open market through book building or Stock exchange;
From odd lot holders.
Source for details of companies proposing to buyback their shares?
Listed companies are required to intimate the stock exchange of general meetings and resolutions passed thereof. As buyback can be made only after passing special resolution,
information on companies proposing to buyback shares may be obtained from the stock exchanges.
When buyback offer document or public announcement is filed with SEBI, SEBI issues a press release and the offer document is put on the SEBI Web site under primary market page
under the head `buyback'.
How to tender shares for buyback, in the tender offer method?
The company will send you a tender/offer form. You will have to fill up the form as per the instructions of the company and enclose the documents asked for, by the company.
How to participate in the buyback if the tender/offer form not received?
You can make an application on plain paper stating your folio number, name, address, number of shares held, share certificate number, distinctive numbers, number of shares tendered,
together with the original share certificate and tender the same at the collection centres/registrars, as mentioned in the public announcement.
Can an unregistered shareholder tender shares for buyback?
Yes, provided you submit the duly executed transfer deed for transfer of shares in your name, along with the offer form and other relevant documents as required for transfer, if any.
The same should be sent to the registrar to the buyback offer.
What is the manner in which the company decides the acceptances from each shareholders?
In case the company's shares are tradable compulsorily in demat segment, the acceptances from any investor shall be on a proportionate basis, irrespective of the number of shares tendered in the buyback.
If the shares are not in compulsory demat segment, first the entire shares tendered being less than the minimum market lot shall be accepted in full. Thereafter, the acceptances will be on proportionate basis in a manner to ensure the acceptances are in market lot. In such a case, a draw of lots shall be done, as in the case of public issues.
When will the shareholder receive intimation about acceptance of his shares?
The company is required to send intimation to the tenderers within 15 days from the closure of the offer.
When will the shareholder receive the consideration/the share certificate?
The company is required to send the above, within 21 days from the closure of the buyback offer.